April 4 U.S. office vacancy rate was flat at
15.8 percent in the first quarter of 2017, compared with the
fourth quarter of 2016, according to real estate research firm
Asking rent rose 1.8 percent in the first quarter from the
same period a year earlier, marking the slowest annual rate of
office rent growth since 2011. Effective rent rose by 0.4
If the new U.S. administration simplifies or lowers tax
rates, job growth could increase and spur higher growth in the
office market, said Barbara Denham, senior economist at Reis.
"Overall occupancy expanded in the first quarter, but growth
continued to disappoint as net absorption was the lowest since
2014," Denham said in a statement.
Net absorption, which is measured in terms of available
office space sold in the market during a certain time period,
plummeted more than 65 percent to 4.92 million square feet.
Construction activity slowed, with 7.94 million square feet
of new office construction completed during the quarter,
compared with 9.09 million square feet in the fourth quarter.
(Reporting by Shashwat Awasthi in Bengaluru; Editing by Maju